Firms that grant substantial decision making authority to the managers of subunits are referred to…

➤ How does decentralization differ from centralization?
Decentralization differs from centralization by where decision rights reside. In centralized firms, top executives make strategic and operational choices. Decentralized firms push authority to divisional or regional managers. This changes speed, adaptability, and accountability: decentralization improves responsiveness but can complicate coordination and uniform policy enforcement across the organization.